DDR tags are volatile
Staff -- Purchasing, 3/18/2004 2:00:00 AM
Keep a close eye on double data rate DRAM prices. DDR DRAM tags increased in February on the spot market.
The average price of a 256 megabit (Mb) 32x8 device was about $4.70 on the open market, according to independent distributor Fusion. That's about 15% more than it was three weeks ago.
Many analysts are confused about DRAM prices because demand has not been strong on the open market. It appears that higher prices are strictly supply driven.
Supply has been affected because some manufacturers have switched capacity to NAND flash and synchronous DRAM because of growing demand for those products. In fact, some suppliers are hedging and allocating capacity among DDR, SDRAM, NAND flash and DDR 2 chips (see story on page 25). The strategy gives them a bit of flexibility and limits their exposure to poorly selling commodities.
Some analysts believe that the higher prices are due to low yields from new chip making processes. Others think DRAM manufacturers are holding on to inventory to drive up prices.
Most analysts believe the higher prices will be short lived unless there is a sudden increase in demand, which isn't likely. Demand will increase, but the increase won't occur until the third quarter and it won't be sharp.
DDR2 DRAM prices surge
10/21/2009Prices rise for DDR DRAM
02/22/2004DDR2 DRAM prices increase on spot market
07/07/2009DRAM prices to fall
10/24/2006
Now Playing: 